Canada Bans China's Hikvision After National Security Review

Chinese surveillance technology company Hikvision must close its businesses in Canada and stop all operations in the country after a foreign investment review by Canadian authorities.

Melanie Joly, Canada's industry minister, said the country recently concluded a "national security review" of Hikvision under the Investment Canada Act, which allows the government to review any foreign investments for potential harm to Canadian security. "The government has determined that Hikvision Canada Inc.'s continued operations in Canada would be injurious to Canada's national security," Joly said on X. "The determination is the result of a multi-step review that assessed information and evidence provides by Canada's security and intelligence community."

The decision doesn't extend to Hikvision's "affiliate operations" outside Canada, Joly said, but she "strongly" encouraged Canadians to "take note of this decision and make their own decisions accordingly." She also said the Canadian government is blocking purchases or use of Hikvision products in government agencies and crown corporations, and it's reviewing "existing properties" to rip out any legacy Hikvision products.

"The Government of Canada welcomes foreign investment -- but will never compromise on Canada's national security," Joly said.

Beijing strongly objected to Canada's decision, saying its national security lacked transparency. A Chinese Ministry of Commerce spokesperson said it encourages Chinese companies to "strictly abide" by the laws of host countries.

"Canada's practice is a typical generalization of national security behavior, which not only damages the legitimate rights and interests of Chinese companies and affects the confidence of enterprises in the two countries in cooperation, but also disrupts and undermines the normal economic and trade cooperation between China and Canada," the spokesperson said June 30, according to an unofficial translation.

The spokesperson added that the "global economic order is suffering from severe impacts of unilateralism and protectionism," and it urged Canada to "immediately correct its wrong practices" and to stop politicizing trade issues. "China will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises."

Hikvision didn't immediately respond to a request for comment.

The company has been subject to strict export license restrictions in the U.S. for years. It was added to the Bureau of Industry and Security's Entity List in 2019 for allegedly supplying surveillance technology for the Chinese government's human rights violations of the Uyghur population in Xinjiang [see 1910070076).